Great Panther Silver posts record Q1 earnings, revenues

Great Panther Silver (TSE:GPR)(AMEX:GPL) reported Tuesday record first quarter earnings, as revenues nearly doubled on higher prices and production.
For the first three months of the year, the silver producer, with two operating mines in Mexico and other exploration properties, posted net income of $7 million, or $0.05 per share, compared to $1 million in the prior year period.
"We are pleased to report that Great Panther continued to achieve record revenue, earnings from mining operations, and net income in our first quarter this year," said executive chairman Kaare Foy.
"We have also made some changes to strengthen both our board and management team which we believe will position us to continue to grow our business profitably in the future."
Indeed, quarterly revenues jumped 95% to $15.5 million, while earnings from mining operations climbed 242% to $8.6 million, from $2.5 million a year earlier.
The company produced 607,225 silver equivalent ounces, which includes the production of gold, zinc and lead, a 15% increase from the first quarter of 2010, as the company experienced record output from its Topia mine.
The latest figure of total metal production includes 410,640 ounces of silver, also a 15% year-over-year boost. Silver payable ounces rose 9% to 348,439 ounces.
However, total cash costs per silver ounce increased 50% to $10.05 net of by-product credits, due to higher smelter charges arising from new contracts at Topia. Site costs were also higher at the mine because of higher tonnes mined and milled at a lower grade, the company said.
Great Panther is making signifcant progress at Topia still, however, increasing measured and indicated resources in March to 7.44 million silver equivalent ounces, reflecting more than a 36% improvement from the 2009 report. Inferred resources more than doubled to 11.91 million ounces.
Looking ahead, the company just begun the permitting process at its San Ignacio property, and expects to advance the asset in the near term. This project, together with improved resources at its Guanjuato and Topia mines, are anticipated to grow the company's production capabilities.
"Following the strong financial performance Great Panther delivered in fiscal 2010, we are off to a stronger start this year, again setting several new records," said president and CEO Robert Archer.
The company, which listed on the NYSE Amex Exchange in February, recently closed an equity financing, raising gross proceeds of $24.2 million in April.